5 Things To Avoid Before Buying A Home In Seacoast Maine

If you are thinking about buying real estate within the next few months, there are specific things that you should avoid doing as they may impact your ability to get a loan. The following are 5 things to avoid before buying a home in Seacoast Maine.

5 Things To Avoid Before Buying A Home In Seacoast Maine

Significant Expenses

Lenders evaluate the percentage of your debt to your overall income. Making large purchases either on your credit cards or with new loans can dramatically change that ratio. In general, the more debt you have, the less you will qualify for on a mortgage. This is particularly important after you have found a property and have started the mortgage process. Lenders will re-run your credit report just prior to closing to verify that things have not changed. If you acquired new debts, this can lead to problems with getting the mortgage.

Changing Employment

As part of the mortgage process, mortgage companies review your previous and current earnings to determine your ability to make payments. Consistency in earnings is essential. Shifting jobs prior to or during the loan process can create issues with qualifying for a mortgage, especially if the new employment is in a separate field or provides lower income. During the mortgage process, it can also lead to delays while the new employment is verified.

Changing Banks

Mortgage processors generally analyze your bank account history over the last few months. Moving your money to a new account may lead to issues. It is advisable to keep money in the same place until after the loan closes.

Large Cash Transactions

Most types of mortgages mandate that you use a certain percentage of your own funds for the down payment or settlement fees. Banks confirm this by reviewing bank statements. Any cash deposits are closely scrutinized. You may be asked to provide information on the source of cash deposits.

Closing Accounts

While preparing to buy a home, you may decide to diligently pay off credit cards. Before doing this, think about consulting with a mortgage consultant on whether it is needed given your financial situation. If you do pay off debts, do not close the accounts as this will reduce your credit score. It is better to leave the accounts open without a balance.

Additional Information on 5 Things To Avoid Before Buying A Home In Seacoast Maine

The above 5 things to avoid before buying a home in Seacoast Maine covers only the most common mistakes common ones. As a local real estate broker, I can provide you with a list of local lenders in . You may reach me, Mini Major, at Bean Group via phone at 617-877-4083 or email at mini.major@beangroup.com.

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